KUALA LUMPUR: HwangDBS Vickers Research (HDBSVR) is maintaining a Buy on Dayang Enterprise and retains its target price of RM3 per share, pegged to 11x FY11F EPS.
It said on Thursday, July 22 that Dayang offers strong earnings growth (FY09-11F net profit CAGR of 46.2%), underpinned by a sizable order book, superior margins, and new contract wins.
'Valuation remains undemanding at 7.5x FY11F PE against the sector's 9.1x,' it said.
Dayang Enterprise has secured about RM680 million worth of contracts this year, or 25% of contracts awarded to local oil & gas companies that the research house tracks.
'This brought its order book to a record high of RM1.1b, implying strong earnings visibility for the next five years,' it said.
It said on Thursday, July 22 that Dayang offers strong earnings growth (FY09-11F net profit CAGR of 46.2%), underpinned by a sizable order book, superior margins, and new contract wins.
'Valuation remains undemanding at 7.5x FY11F PE against the sector's 9.1x,' it said.
Dayang Enterprise has secured about RM680 million worth of contracts this year, or 25% of contracts awarded to local oil & gas companies that the research house tracks.
'This brought its order book to a record high of RM1.1b, implying strong earnings visibility for the next five years,' it said.
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